Israel Considers Delaying Sale of Credit Card Firm Cal

The Israeli government is positively considering a delay in the sale of the credit card company Cal, owned by Discount Bank. This comes after the acquisition deal, involving Union Group and Harel Insurance, collapsed definitively on Wednesday. The deal fell apart due to conditions set by the Antitrust Authority. The potential delay requires dual approval from the Supervisor of Banks at the Bank of Israel and the Ministry of Finance.

Discount Bank had signaled its intention to request an extension for the sale, which is currently mandated by May 2027, about a week ago, though a formal request has not yet been submitted. Sources familiar with the matter indicated that it would be unreasonable to hold Discount Bank to the original deadline and that an extension would be favorably considered, subject to certain conditions and reviews.

Key factors to be examined include the time elapsed between the opening of the trading room and the initial buyers being found. A significant argument in favor of Discount Bank is that the Antitrust Authority's review of the deal took nearly a year. Market sources suggest that the difficulties imposed by the Antitrust Authority, particularly the demand that Union Group sell its holdings in Super-Pharm, were intended to push for Cal's IPO, implying that any deal submitted to the authority would face obstacles.

In recent years, there has been public criticism regarding the transfer of ownership of credit card companies from banks to insurance companies, shifting the locus of power instead of providing an alternative to strong market players.